Wealth Management IQ and ISS Market Intelligence (ISS MI) have compiled a list of RIAs growing fast while keeping sight of their priorities: the client experience and the sustainability of the business.
Advisor Sentiment Index: Confidence in Stock Market, Economy DropsAdvisor Sentiment Index: Confidence in Stock Market, Economy Drops
Financial advisors were split on the current state of the economy, while a majority held a positive view of the stock market in April, according to WealthManagement.com's Advisor Sentiment Index.
May 23, 2024
Financial advisor sentiment around the stock market and the economy dropped in April.
The health of the economy dropped nine points from the previous month, while advisor confidence in the stock market fell to 103, from 110 in March. A 100 response equals a neutral view.
According to the survey, advisors are split on the current state of the economy, with 39% expressing a positive sentiment, 40% neutral and 21% feeling negative.
Looking to the future, advisors are more pessimistic, with 36% expecting a decline in the next six months. Just 20% see an improvement coming. However, looking forward to 12 months, the trend reverses, with 40% expecting an improvement and 39% predicting a decline.
Regarding the stock market, advisors are bullish, with 59% considering its current state to the positive. However, looking forward six months, advisors lean negative. Looking forward to March 2025, they turn slightly more positive, with 51% expecting an improvement.
Surely, persistent inflation, the delay in interest rate cuts and the upcoming presidential election are all reasons for advisors’ viewpoints.
Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Data collected April 15-25, 2024. Methodology conforms to accepted marketing research methods, practices and procedures. Beginning in January 2024, WealthManagement.com began promoting a brief monthly survey to active users. Data will be collected within the final ten days of each month going forward, with a goal of at least 100 financial advisor respondents per month. Respondents are asked for their view on the economy and the stock markets both currently, in six months and in one year. Responses are weighted and used to create an index tied to a neutral value of 100. Over time, the ASI will provide directional sentiment of retail-facing financial advisors.
